Tuesday, May 24, 2022

U.S. Treasury Department assessed the success of Russia and China in the search for an alternative to the dollar

“Russia and China have not achieved success in the search of an alternative to the US dollar as a calculating currency.” Such a statement was made by U.S. Treasury Secretary Janet Yellen. It writes TASS, citing Reuters.

“China has been searching, so has Russia, but it hasn’t really come close to inventing any replacement for the dollar,” Yellen said when asked if the dollar could lose some of its global influence because of Russia and China’s efforts to find alternative ways of doing business.

Yellen assured that the dollar has no competition because it is a reserve currency. In her view, this allows for “very strong sanctions.”

The head of the U.S. Treasury Department said that the U.S. economy remained strong, but she admitted that anti-Russia sanctions would have consequences for Washington, too. She explained that tightening monetary policy to fight inflation could lead to a recession, but expressed confidence in the Federal Reserve’s ability to balance this.

Earlier, U.S. President Joe Biden blamed Russian leader Vladimir Putin for record inflation in the United States. According to CNN with reference to the results of a study of the international consulting company RSM, the aggravation of the situation around Ukraine threatens the United States to increase inflation by more than 10 percent in annual terms for the first time since 1981.